Accelerating Solar Water Pump Sales in Kenya: Return on Investment Case Studies
Abstract
Irrigation allows smallholder farmers to increase their yields and to grow two or even three crops of high-value vegetables and fruits a year, receiving higher commodity prices during the off-season. In Kenya in 2010, 2.5 million smallholders generated 80% of national horticulture production. Inexpensive diesel water pumps (US $200) are available, but fuel purchase and transport costs are significant (typically US $100–$300 per 3-month season for one acre); as a result farmers are conservative with, or cannot afford, diesel irrigation. Return on Investment case studies by Winrock International show an increase in gross profits of up to 186% within one to two crop seasons after purchase of a solar water pump (SWP). Between August 2015 and December 2016 Winrock demonstrated SWPs to more than 16,000 smallholder farmers in Kenya and found that despite strong demand, the lack of smallholder credit options for solar irrigation is a key obstacle preventing SWP sales from increasing rapidly; financial institutions and SWP retailers need technical assistance to facilitate smallholder access to credit.